We came across a bullish thesis on Casey’s General Stores, Inc on Pitchstack Investing Substack by Pitchstack Investing. In this article, we will summarize the bulls’ thesis on CASY. Casey’s General Stores, Inc’s share was trading at $ 506.31 as of 18th June. CASY’s trailing and forward P/E were 34.58 and 31.95 respectively according to Yahoo Finance.
A busy grocery store aisle stocked with the company’s weight management products.
Casey’s General Stores operates a large chain of convenience stores across the U.S., with a focus on food, beverages, and fuel. Its strategic emphasis lies in serving rural and underserved markets, a move that has proven effective in driving steady foot traffic and loyalty. Notably, 75% of its store traffic stems from non-fuel purchases, which are considerably more profitable, generating industry-leading margins of 41%.
Among these offerings, the prepared food and beverage category stands out as a key growth engine. In Q1 2025, this segment delivered an impressive 58% gross margin, underscoring Casey’s ongoing shift toward higher-margin products that elevate its overall profitability profile. The company’s commitment to a vertically integrated operating model—owning both its distribution centers and store real estate—provides significant competitive advantages. This integration enhances supply chain control, improves cost efficiencies, and enables rapid responsiveness to market dynamics, particularly important in inflationary or supply-constrained environments.
Casey’s approach positions it well to weather economic fluctuations while maintaining strong margins and consistent customer traffic. The expanding portfolio of prepared meals and private-label offerings not only supports margin expansion but also builds brand loyalty and differentiates the chain in a fragmented convenience store landscape.
With a clear strategy, strong operational backbone, and proven ability to execute in niche markets, Casey’s stands out as a resilient and opportunistic player. Its focus on high-margin segments and cost-efficient operations presents an appealing investment case, offering both stability and growth potential in a defensive yet evolving retail sector.
Previously we covered a bullish thesis on Casey’s General Stores, Inc. by Two Natural Capital in May 2025, which highlighted the company’s dominance in rural markets, its transformation into a food-first operator, and strategic acquisitions like Fikes Wholesale to accelerate store growth. The company’s stock price has appreciated approximately by 9% since our coverage. This is because the company’s growth initiatives and food-led strategy have continued to deliver. The thesis still stands as Casey’s maintains operational discipline, margin strength, and geographic expansion. Pitchstack Investing shares a similar view but emphasizes the benefits of vertical integration and non-fuel margin resilience.
